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NMR Leads Nielsen Revenue Rise
The Nielsen Company has reported revenues for the first quarter of 2007 up 5% over the same period last year, helped by a strong performance (up 7%) from its Media Research division.
 Consumer research climbed 5%, while business media declined 5% - Nielsen says the latter is due to shifts in the timing of a number of conferences and trade shows, as well as 'softness' in business-to-business advertising sales.
Operating income was $56 million compared with a pro forma operating income of $62 million in the first quarter 2006. The firm says its results were negatively impacted by $19 million in restructuring costs and $8 million spent on recruiting and other acquisition related compensation.
In the eight months since former GE Vice Chairman David Calhoun took over as CEO of Nielsen, he has focused on this re-organisation programme and pushed for an integration of the firm's disparate businesses in media and marketing research, and business media publishing.
Commenting on the company's future during a quarterly earnings call, Calhoun predicted that much of the firm's future growth would come from new interactive measurement services – NetRatings and BuzzMetrics in particular.
He said that other big drivers for Nielsen would come from the integration and convergence of its research products, and from new services being marketed by NielsenConnect (www.mrweb.com/drno/news6781.htm ), and already meeting a positive reaction.
Calhoun acknowledged some concern about the new measurement services being launched by various digital set-top players, but indicated they would add to the marketplace and would not threaten Nielsen's core 'currency', adding that Nielsen would compete with new product offerings in the digital set-top arena.
Earnings before interest, taxes, depreciation and amortisation and other adjustments were $1,121 million for the year ending March 31, 2007. Total debt was $7.75 billion, and cash balances were $617 million. Capital expenditures were $49 million in first quarter of 2007 compared with $33 million in Q1 2006. Nielsen is on the web at www.nielsen.com .
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